Generic Drugs Save Money
Generic drugs save money because of the low cost and best quality. Generic drugs are the drugs which are produced and distributed without the patent protection. Food and Drug Administration in United States has declared certain rules for the manufacturing of Generic drug which are as follows:
- Generic must contain the same ingredient as the original drug.
- Generic drug should be identical or bioequivalent to the original drug.
- Phamacokinetic and pharmacodynamic properties of the generic drug must be similar to the original drug.
- Generic drugs should be similar in strength when compared with the original brand-name drug.
- Side-effects of the generic drug can be less, but can not be more than the original brand-name drug.
- Any generic before selling into the market should undergo the FDA tests.
Generic are very cheaper in cost when compared to the brand-name drugs. The main reason for the low cost of generic drug is the increase in the competition when the drug is no longer protected by the patents. Companies are also reducing their investments in the manufacturing of the generic drugs; hence they are able to make more profits. Many developing countries prefer generic drugs because of the low costs.
Companies producing generic drugs have to no longer spend the money on the drug discovery. Generic drug companies have to follow the same procedure for the manufacturing of the drug and to take in consideration that the generic drug also produces similar effects. Generic drug companies receive the benefit of the marketing and advertising effects put by the brand-name drug companies. Thus, generic drug saves the lots of money of the generic drug manufacturing companies.
Generic drugs are also preferred by the customer because of the low costs and good quality. Costs of the generic drugs are very less. When costs of generic drugs are compared with cost of original drug they are found be less than the half of the cost of the original brand-name drug, but still generic drugs are similarly effective like the brand-name drug. Competition is seen between the generic drug manufacturers and brand-name drug producers with similar therapeutic uses when generic drugs are prescribed by the doctors while following the step therapy.
As a result, generic drugs are saving the money of both, the generic drug manufacturers and consumers.